Akar Auto Industries Reports Mixed Performance in Q2 FY25 Financial Results

Akar Auto Industries, a microcap engineering company, has recently declared its financial results for the quarter ending September 2024. The stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Akar Auto Industries has shown a flat performance in the second quarter of the fiscal year 2024-25. However, there has been an improvement in the company’s overall score, which has increased from -6 to 1 in the last three months.

The company’s net sales for the quarter were the highest in the last five quarters, standing at Rs 95.96 crore. This indicates a positive trend in the near-term sales for Akar Auto Industries. The operating profit (PBDIT) for the quarter was also the highest in the last five quarters, at Rs 7.33 crore. This shows a positive trend in the company’s near-term operating profit.

Moreover, the operating profit margin for the quarter was the highest in the last five quarters, at 7.64%. This signifies an improvement in the company’s efficiency. The profit before tax (PBT) less other income for the quarter was also the highest in the last five quarters, at Rs 2.84 crore. This indicates a positive trend in the company’s near-term PBT.

However, there are some areas that need improvement for Akar Auto Industries. The interest cost for the nine-month period has grown by 32.40%, standing at Rs 9.89 crore. This suggests an increase in the company’s borrowings. Additionally, the debtors turnover ratio for the half-yearly period was the lowest in the last five periods, at 5.77 times. This shows a slowdown in the company’s pace of settling its debtors.

Overall, the financial results for the quarter ending September 2024 show a mixed performance for Akar Auto Industries. Investors are advised to carefully analyze the company’s financials before making any investment decisions.